MORTGAGE LAWS

New Zealand Herald, Volume 78, Issue 24104, 24 October 1941, Page 9

MORTGAGE LAWS

STOCK AND LAND IMPORTANT AMENDMENT [B? TELEGRAPH —PRESS ASSOCIATION'] WELLINGTON, Thursday Regulations having an important effect on stock owners and mortgagees of rural property arc contained in an amendment to the -Mortgages Extension Emergency Regulations, 1940, which is brought down with to-night s Gazette. The original regulations provided that a mortgagee could hot call up principal due under a mortgage on property without leave of the Court, and it was defined that "property" should include both land and chattels. Difficulty arose, however, in connection with the calling up of mortgages over stock, firms claiming the right to hold proceeds from the sale of such stock. The question then arose whether in fact the holding of such proceeds amounted to the calling up of a mortgage if the stock mortgagee did not pay the land mortgagee.""and. further, whether anything could lie done to make the stock mortgagee par the land mortgagee. In a recent" case in Napier Mi'- Justice Ostler ruled that the regulations enabled the Court to hold that the stock mortgagee was party to the proceedings between the land mortgagee and the mortgagor. The Chief Justice, Sir Michael Myers, in a later case, however, held a different view, and the purpose of the present amendment is to make it perfectly clear that a stock mortgagee is libund by the original regulations, and it provides the necessary machinery to bring a stock mortgagee in. It also provides machinery V which a mortgagor or mortgagee of land or a lessor" of land (if any) or any other person haviuu any interest in land mav applv to the Court lor an order in respect of a stock mortgage.